General Entries 2-13

2. Record the payment of initial direct cost.

3. Record the cost of the lease

4. Record the depreciation.

5. Record the lease revenue

6. Record the cash received.

7. Record the cost of the lease.

8. Record the depreciation.

9. Record the lease revenue.

10. Record the cash received.

11. Record the cost of the lease.

12. Record the depreciation.

13. Record the lease revenue.

(Journal Names: accumulate depreciation, building, cash, cost of goods, deferred initial, direct cost, deferred lease revenue, deferred sales revenue, depreciation expense, equipment, interest expense, interest payable, interest receivable, interest revenue, lease expense, lease revenue, Maintenance expense, notes payable, prepaid expense, sales revenue, selling expense)

The following relate to an operating lease agreement: a. The lease term is three years, beginning January 1,2024 b. The leased asset cost the lessor $840,000 and had a useful life of eight years with no residual value. The lessor uses straightline depreciation for its depreclable assets. c. Annual lease payments at the beginning of each year were $143,000. d. Incremental costs of negotlating and consummating the completed lease transaction incurred by the lessor were $3,000. Requlred: Prepare the appropriate entrles for the lessor from the beginning of the lease through the end of the lease term. Note: Round your Intermedlate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. Journal entry worksheet